NOL - NOL target cut to $1.94 by Nomura; Keeps Neutral

Stock Name: NOL
Company Name: NEPTUNE ORIENT LINES LIMITED
Research House: Nomura

Nomura cuts Neptune Orient Lines (N03.SG) target price to $1.94 from $2.30, based on 0.8X 2011 P/B vs 1.1x previously, to reflect lower average freight rates.



“Although container freight rates are traditionally weaker during the 4Q peak season end, we expect freight rates to continue to decline into 2011,” says Nomura.



Reseach house says rates have peaked, expected to fall 5% in 2011 as supply exceeds demand. Keeps Neutral call. Shares off 0.5% at $2.01.